Fin24

Eskom mum on steep hikes

2012-10-11 12:42

Johannesburg - Eskom has declined to comment on a news report that it would ask the National Energy Regulator of SA (Nersa) to almost double electricity prices over the next five years.

"We are busy finalising our application and will be submitting hopefully later this month," Eskom spokesperson Hilary Joffe said on Thursday.

The Sowetan earlier reported Eskom would ask Nersa for revenue totalling R1.7 trillion over five years.

This would see household electricity prices rising from 60c per kilowatt hour to 112c.

Joffe said the Sowetan did not have Eskom's "final numbers" as these were still being drawn up.

"We were ready to submit at the end of August but we were asked by government to do additional work."

The next five-year tariff period will come into effect on April 1 next year, and Nersa needs to make a decision by March.

"We are very keen to have South Africans engaging with the application and participate in the public process," Joffe said.

The Sowetan warned that price increases of this magnitude would have devastating consequences for poor households.

It could also threaten jobs in energy-intensive sectors.

However, below-inflation increases could threaten Eskom's credit ratings.

Further price increases would also force consumers to use less electricity.

One way to rein in electricity price hikes would be to keep coal costs under government control.

Coal accounts for 50% of Eskom's cost base.

However, this would reduce returns to mining companies, the daily reported.



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Comments
  • goyougoodthing - 2012-10-11 12:51

    WTF

      james.weather.50 - 2012-10-11 13:23

      Its just another way to steal South Africans money ... Shame on you guys!

      annelise.venter.77 - 2012-10-11 13:50

      Who the hell pays 60 cents per kilowatt hour. I already pay R1-84c per kilowat hour at our house and R 1 -54/kwh at our factory. If this increase is granted I would have to let staff go and mechanize!

      daleinn - 2012-10-11 15:41

      Ever wonder why there are so much of strikes.. fuel price hikes, electricity hikes.. at the center to profit from them are the government. This government cant CUT costs of essential needs of the economy to drive growth. If they could improve the cost of living in the economy, then unions and government can justify why workers demands are unreasonable. At the moment , the government is crippling the economy from both ends, and failure to deliver on reducing the cost of a loaf of bread ..as an example. they are not improving the lives of south africans , they are destroying it! Go on increase it again!that is the only solution

      jaco.prinsloo.37 - 2012-10-12 07:38

      They are basically screwing themselves, as it is getting much more viable to go Solar. I'll basically just take out a loan, get a Solar geyser installed and rather pay off my solar panels than those ludicrous electricity bills!

  • arthur.hugh - 2012-10-11 12:52

    I've got a better idea, tell those useless directors they're not getting their 80 million Rand bonuses for the next 10 years.

      steve.ritchie.739 - 2012-10-11 13:19

      Yup, and all this because of zero maintenance and fat bonus taking.

      armand.horn.58 - 2012-10-11 15:25

      It is Governments "buddy's" with the illegal Coal mines that is the ones that is coining it

  • bouncing.betty.33 - 2012-10-11 12:54

    from 60c to 112c per kilowatt hour? Ill take that anyday, I live in JHB and currently pay 135c per kilowatt hour prepaid! So cool lets take it down to 112c Im with that! Anybody else on prepaid and if so what do you pay per kilowatt hour / per unit?

      steve.blignaut - 2012-10-11 13:05

      112c....

      foxiloxi - 2012-10-11 13:08

      112cpkh

      christo.crous - 2012-10-11 13:17

      I was paying 232c/kh,..had a big fight with Mr.Meterman (bunch of crooks)and got it lowered to 133c/kh.

      mattewis.kat - 2012-10-11 13:19

      141c VAT included!

      lerato.mnizi - 2012-10-11 13:21

      And all the while BHP Billiton is paying 12cpkh, or is it 8cpkh? Anyway, its something ridiculous! Stuff them. Illegal connections is the way to go...

      mary.kircher - 2012-10-11 14:13

      I live in Port Elizabeth and pay R1.0409

  • lerato.kay.3 - 2012-10-11 12:55

    Are they crazy we are paying more than R1.12 already

      rob.gunning.1 - 2012-10-11 13:13

      And in 5 years you'll pay R2.24 /kWh

      richard.bosmano - 2012-10-11 13:50

      viva anc ,viva no planning ahead what so ever ,viva stealing the maintanance money, viva raping the taxpayer. My anc , my disaster

  • adriaan.pieterse - 2012-10-11 12:55

    "However, below-inflation increases could threaten Eskom's credit ratings." I really don't give a damn about Eskoms credit rating, do they care about my livelihood... didn't think so.

  • taetjo.mathabatha - 2012-10-11 12:56

    God help us all... Are these guys serious? I seriously hope this remains as an allegation and nothing more.

  • jackey.moss - 2012-10-11 13:01

    I am already at R2..753Kwh and got a R1050.88 bill.WTF is going on ???

  • singatha.jongihlati - 2012-10-11 13:03

    At this rate we will be in the Stone Ages sooner than you can say TARIFF INCREASE AGAIN???? Petrol price increases are also doing their best in ensuring we really reverse there at lightning speed. WTF!!! Surely there's got to be some serious mismanagement here,yeah, on an epic scale.

      steve.ritchie.739 - 2012-10-11 13:24

      It's the cANCer and their fat cat buddy thieves that we have to thank for the mess. They do not give a rat's butt about improving the plight of the poor, educating the children, health services, etc. They only care about lining their own pockets at the taxpayers expense. Vote wisely in 2014, should we get that far.

  • John - 2012-10-11 13:05

    Wake up ANC. You are running out of time! IPP's(independent power producers) should be encouraged as with their competition can try and keep prices down. Eskom is like Telkom...manned by a bunch of cadres with no financial sense.

  • justice.ubuntu - 2012-10-11 13:05

    this is criminal... not more nothing less... these useless no-good corrupt morons at eskom do nothing but scheme how to rake in even more money to pay themselves million rand bonuses... they've already more than doubled our electricity prices over the last few years under the pretext of essential maintenance and expansion and have shown what for the the billions they've earned... absolutely sweet fanny adams...!! the ONLY this we get for the increased rates are pathetic tv adverts telling us to switch off the geyser and pool pump every night... but of course the board rush with indecent, criminal haste to pay themselves mind-boggling bonus... what the hell do they deserve or get bonuses for... bonuses should be just that... rewarded for achievement and exceeding expectations on delivery and service... what the hell have they delivered except higher prices and and pathetic tv adverts...?? if this happens the board of directors and the people in government who allow it to should all be shot... these damn corrupt incompetents are driving south africa into the dark ages... wake up...!!

  • irma.white.9 - 2012-10-11 13:05

    Screw you Eskom, my electricity bill has increased by over R100 a month DESPITE the fact that I am doing my upmost to use as little electricity as possible (and that R100 makes a huge difference to me). You are sucking the life out of people. Stop giving such huge bonuses to employees who are obviously incompetent, stop throwing huge parties and most of all, stop trying to get the public to pay for your mistakes!!!

  • steve.blignaut - 2012-10-11 13:05

    oh but wait, poor households with dtsv dishes on the roof and beamers outside will have their free amount increased.

  • larry.piggott1 - 2012-10-11 13:06

    Eskom is just a bunch of incompetent thieves. Now they are also Sneak thieves.

  • dadidwa - 2012-10-11 13:06

    My fear is that with the MYPD3 tariff hike set to take place next year, both South African business and citizens will bare the brunt of higher unemployment and a decline in the growth of entrepreneurship because the operation costs of running a business in SA will be to high. It is a shame that some municipalities do not allow grid tied solutions - which make sense for large house holds who want to play their part by making their premises energy efficient. However, we could all sit back and complain and ignore the fact that this is a crisis, or utilize our power as citizens and support programmes that really aim to address the energy crisis by providing solutions that help us during this climate. Join programmes like those of GenSave (www.gensavesa.com)which enable companies and residential property owners to make their property energy efficient with little to no cost, take pledges such as the 49m pledge(www.49m.co.za) to access tips on making your premises more energy efficient and support your Associations that liaise with government and solutions that make sense to all South African citizens. As citizens we are more powerful than we think lets harness this power. We can't allow for such an increase in the tariff as this will cripple the South African economy - all in the aim of keeping Eskom afloat.

      steve.ritchie.739 - 2012-10-11 13:27

      Good point Daniel. However, the thieves will continue to plunder as long as the voters keep them there.

  • njdejager - 2012-10-11 13:07

    How can they just DECLINE to comment. Is this a COMMUNIST regime? We have a right to know as its our money???? Amazing how slowly but surely the alterior motives are starting to show.

      terrylee.heuer - 2012-10-11 13:41

      This is a comment on a website I found...If the ANC continue to gain momentum and get their way, South Africa will be ruled by a communist party in the not so distant future\

  • jackey.moss - 2012-10-11 13:07

    753Kwh.last month got a R1050.88 bill...Who's fooling who..

  • Billy - 2012-10-11 13:08

    inrease pricing to make money high tariffs cause people to use less electricity, eskom make LESS money telkom increases pricing again to make money people use even LESS electricity some seriously stupid people running the show

  • foxiloxi - 2012-10-11 13:09

    Catch 22, My electricity bill at my house is R3400 each month, i can't afford solar geysers nor to convert my house because of the price, if this happens, don't believe i will be able to afford my house...

      malcolm.james.macleod - 2012-10-11 13:53

      Your comment makes no sense, if you can afford a R3400 electricity bill then you must easily have the finances to afford a solar geyser (which you could probably 'rent to buy' for a fraction of that bill if need be. Note this doesn't mean that I support the high electricity prices, I agree the whole thing is disgusting, but still your comment does not add up...

  • justice.ubuntu - 2012-10-11 13:09

    this is criminal... nothing more nothing less... these useless no-good corrupt morons at eskom do nothing but scheme how to rake in even more money to pay themselves million rand bonuses... they've already more than doubled our electricity prices over the last few years under the pretext of essential maintenance and expansion and have shown what for the the billions they've earned... absolutely sweet fanny adams...!! the ONLY thing we get for the increased rates are pathetic tv adverts telling us to switch off the geyser and pool pump every night... but of course the board rush with indecent, criminal haste to pay themselves mind-boggling bonuses... what the hell do they deserve or get bonuses for... bonuses should be just that... rewarded for achievement and exceeding expectations on delivery and service... what the hell have they delivered except higher prices and and pathetic tv adverts...?? if this happens the board of directors and the people in government who allow it to should all be shot... these damn corrupt incompetents are driving south africa into the dark ages... wake up...!!

  • angela.aranes - 2012-10-11 13:09

    If this is their route, then government should force all companies to increase salaries by 20% !! Because how else are we to survive with petrol, electricity, medical aid an food costs all increasing way above inflation but not my salary>???

      richard.bosmano - 2012-10-11 13:54

      If you force company's to increase wages/salary's by 20% you'll close down about 25% of businesses,increase unemployment,push up welfare costs etc..

      KReddy - 2012-10-11 14:21

      Duh to that comment above. Whichever way u look at it, job creation will surely go down.

  • irma.white.9 - 2012-10-11 13:12

    Nothing like making other people pay for your mistakes and mismanagement. Eskom and the ANC are all the same, take take take despite the fact that they are obviously incompetent, and just transfer the costs to the citizens.

  • frank.hartry - 2012-10-11 13:12

    I am an old aged pensioner. I paid my taxes for fifty years without fail until my retirement. All so that ANC thieves led by Zuma can live in luxury with their wives. I am already living almost in the dark and if the electricity bills are raised any more i will be in the dark.

  • sehlabane.marxist - 2012-10-11 13:13

    But where is our tax money going? We pay tax from our salaries, tax on consumables [VAT], tax on the little we try to save/invest, tax on the property we purchase [rates], levies on the fuel we buy etc. The government is also making millions from trafic fines, mining royalties and higher taxes paid by these very same mining industries. where exactly is the money going?? Doubling the tarifs for the next five years and paying for e-talls sounds rediculous. Where exactly does this crazy government expect us to get such money if they are failing to create jobs and paying better salaries... We are slowly but surely becoming slaves to our government...

      irma.white.9 - 2012-10-11 13:19

      The money is going to Zuma's house and dodgy tenders. But the government doesn't care about this price hike, because we pay their electricity anyway. So you are entirely right about becoming slaves to our government.

      steve.ritchie.739 - 2012-10-11 13:35

      The cANcer believes that the people should serve them. It should be the other way around. They are elected public servants, but don't see it that way. The only way to deal with this attitude is to get the thieving morons out, one way or another.

      Gatvol Griet - 2012-10-11 13:36

      Well, that's a good marxist-communist system for you... citizens are slaves to the state. Well, actually globally, it's Fascism that's taking over - a marriage of state and government and the common citizen are slaves, drone workers.

  • foxiloxi - 2012-10-11 13:15

    Eskom are very quiet about the 35% of the total electricity stolen from the grid, they should be forced to sort this out first before making us pay more - STop the theft off the current grid or recover the money!! Make BHP Billiton who contribute very little (Comparatively speaking) to the economy rather than making us pay!!

  • Dougir - 2012-10-11 13:15

    I think I should invest in a candle manufacturer, back to the dark ages we go....pun intended!

  • toni.falletisch - 2012-10-11 13:25

    This will finally oust this corrupt government,good riddance!

  • carl.debeer.33 - 2012-10-11 13:26

    Africa. "The Dark Continent"......

  • dewalds3 - 2012-10-11 13:27

    Hehehe - back to the bush with all of us. I offer classes in primitive fire-making techniques and also bow-hunting. Who's interested?

  • richard.bradshaw2 - 2012-10-11 13:28

    Eish Eskom, you are also to useless to run a toilet, restructure your business plan,do we all recall what happened in Zim, well it is happening here and you dont even realise it, screw the ANC, and what they hold true, as there truth is distorted in every manner possiable, Stand up ANC and accept you cannot run a country, that was triving albeit with aparteit, but you where giving the land and counry to run,and you have failed, time for a change, can all the educated people of all races stand up as only we can make a difference,

  • sthembiso.jali.50 - 2012-10-11 13:32

    the petrol is also going up soon, its a me going up competition. brace urself.

  • louise.johnson.58958 - 2012-10-11 13:35

    Why they need the money ---- http://www.moneyweb.co.za/moneyweb-south-africa/bhp-billiton-contracts-could-cost-eskom-r55bn?sn=2009%20Detail

  • glenda.hammond.37 - 2012-10-11 13:38

    If billions in uncollected municipal debt is written off every few years and this service is supplied by Eskom, then surely there is a huge problem here in the first place. Does Eskom think the only solution is to milk those who pay, which in all probability will increase the situation even further as many households wont be able to afford these massive increases.

  • andrez.kolesky - 2012-10-11 13:38

    "The Sowetan warned that price increases of this magnitude would have devastating consequences for poor households." And devastating consequences on the ANC as far as votes are concerned too.

      al.pal.106 - 2012-10-11 14:32

      @Andrez with each increase, and especially increases of this nature, it puts it even further out of reach for the poor to afford and actually pay for their electricity use. Thus snowballing the effect on those that can pay. Until they too can no longer afford to use the service. At this point all the cards come tumbling down, as the support base is continually deminishing to a point were it can no longer support the higher demands.

  • drizzt.pirie - 2012-10-11 13:39

    Looks like the Eskom CEO's and big wigs need another 100% bonus so we have to pay for it.

  • jane.jeffrey2 - 2012-10-11 13:40

    Don't they realize that the Golden Goose has already been cooked there are no more golden eggs available. If Eskom stops giving themselves such fantastic salaries and bonuses there would be enough for the infrastructure.

  • richard.zanner - 2012-10-11 13:40

    And this after the increase plan of the last 3 years of 33% per year. Where will this stop. It will impact on every other price out there and certainly reduce our chances to compete with the rest of the world as to exports. Manufacturing in SA together with labour will simply be and already is to expensive. We are being flooded with products from China for this reason. But then municipalities are able to write of billions of bad debt related to power. After we had all the blackouts a 3 year plan was developed and we have all seen the increases that plan has brought about. Does this Government not understand that their mismanagement will kill this economy which is already so fragile. Seen the Rand lately?

  • Gatvol Griet - 2012-10-11 13:41

    Say what? only 60 cents???? I am already paying more than R1 in PRETORIA!!!!

      nettie.potgieter.5 - 2012-10-11 13:47

      Yes I would like to know who pay 60cents??????

  • Gatvol Griet - 2012-10-11 13:46

    Well the R15milliion spent on parties wasn't enough, apart from Billiton surely the fatcats must dream of their own ZumaViLLES...

  • trevor.pietersen.3 - 2012-10-11 13:47

    Will the ANC still be in power in 5 years from now??? is that why?

  • george.michaelides.71 - 2012-10-11 13:47

    Just 3 short y(t)ears ago we where paying approx, R12000.00 /month We currently pay R48000.00/month, go figure, and we are a small business. How much more can we handle, just dont know at the moment. Eventually more jobs lost , more unemployment, Well done ANC!

  • harald.voney - 2012-10-11 13:49

    yes yes, and ANC big wigs are benefitting now from the coal supplies!! fact And Anc are benefitting from the construction contracts!! fact All very nice for the ANC... very nice and cosy; but not for SA citizens...

  • juanita.vanrooyen.98 - 2012-10-11 13:49

    dark days and darker nights ahead

  • denis.dendrinos - 2012-10-11 13:54

    Just poor households - I think not - try every single household Sowetan!

  • dallas.eckert - 2012-10-11 13:56

    It's time you all stopped iching and voted with your feet....

  • Hannes R Klopper - 2012-10-11 14:03

    You say prices to go up from 60c to 112c , but Townhouses and Retirement complexes are allready on 112c !!hitting the soft targets ! how pathetic Eskom ! You need a change in Management!!!!!!!!

  • Clive.D.Buckley - 2012-10-11 14:09

    I already pay around 120c/KWH???? How is changing it to 112c/KWH doubling the price????

  • KReddy - 2012-10-11 14:25

    No wonder sa is deemed the \rape capital\ of the world. Another definition to add to \rape\ in the oxford dictiionary should be \the act of being over taxed\. Some statitians say we pay just over 80c per rand on direct and indirect tax. Feel like going and bending at sars, rates offices, eskom, sanral etc. Why not, already being tax raped.

  • calliedj - 2012-10-11 14:27

    Where is the current price 60c/kWh? I'll start packing so long...

  • Hannelie Von Abo Geldenhuys - 2012-10-11 14:42

    are Eskom out of their mind!! When is this going to stop!?because of people that DO NOT know how to manage a company the consumer is plagued with hihger rates every year!!! fire the incompetent dummies!!

  • ludlowdj - 2012-10-11 14:47

    People will bitch and moan, government as a major Eskom shareholder will approve the increases. and people will go on with their lives until the next increases, if nothing else Government is well aware that people are fickle and have short term memories.

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